With a current price of $19.09, Perspecta Inc. [NYSE:PRSP] is active in the Information Technology Services industry, with a 5-day price swing of 0.05%.
For the year, the stock is trading -27.80%, while, as a point of reference, the S&P 500 is trading 0.87% YTD. Other data to note on this name is a price per sales number of 0.70 and a price per cash flow number of 5.95.
The Bears are coming
Holding a Market Cap of $3.16 billion, Perspecta Inc. has seen a trading range over the last year of $14.03-$29.88.
For the last five days, PRSP is up from its last closing price. The average shares trading hands each day is 914.01K, with average 10-day volume coming in at 0.91 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for PRSP. When we apply the Elder Force Index to Perspecta Inc., we are seeing an Elder Force Indicator number of -815616.0.
The recent performance of the stock is another area that can tell traders how to proceed. PRSP is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 10.36. Moreover, the company’s enterprise value has gone from $6.37B to $5.55B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, PRSP made a profit of 209.0 million. Perspecta Inc. also saw quarter revenue growth year over year of 11.76%. In addition, the company has operating cash flow of $573.0 million.
Looking at popular technical indicators, the company’s 5-day moving average is 19.35 compared to the 50-day moving average of 19.94. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. PRSP currently holds a 9-day RSI of 38.96%, while 100-day RSI stands at 46.53%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. PRSP’s 9-day MACD is 0.09 and the company’s 100-day MACD stands at -2.20.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 14.77% by insiders and 76.89% by institutions. Regarding institutional holdings, Blackrock Inc. owns 9.87%, while the second top holder, Vanguard Group, Inc. (The), currently owns 8.83%.
Over the last six months, insiders have bought 2,500 with the most recent transaction from Curtis John M, Director, CEO, with a purchase at price 19.93 per share.
Overall, the recommended rating for PRSP is Moderate Buy. Currently, the company has 5 analysts watching the stock, and the average quarterly earnings estimate is 0.5. Quarterly revenue estimates are averaging 1.11B with the high estimate reaching 1.12B and the low at 1.1B.
To review, the current 1-year target estimate is sitting at 26.00, while the current price 19.09. Based on this, we expect the stock to rise considering the aforementioned fundamentals.